KUALA LUMPUR: A Pakatan Harapan backbencher has urged the government to make it mandatory for financial institutions and telecommunications companies to bear at least 50 per cent of losses faced by customers due to online fraud.
Petaling Jaya member of parliament Lee Chean Chung said this was because there were incidents where banks did not inform their customers if transactions were frequently made.
He also said there have been incidents where customers were only able to reach the bank's hotline after 30 minutes, only to be told that the issue was not within the bank's jurisdiction.
"I suggest the government make it compulsory for banks and telcos to bear at least 50 per cent (if not) 100 per cent of losses (faced by customers) in any type of fraud unless it is found to be fake," he said when debating the Criminal Procedure Code (Amendment) Bill 2024 in the Dewan Rakyat.
Lee said most banks in the United Kingdom had signed an industry code which requires them to reimburse their customers who fall victim to authorised push payment fraud.
"Commercial banks in Malaysia do not adhere to this industry code. (However), OCBC Bank acknowledged that their response did not meet their standards and took a bold and responsible stance by offering compensation.
"This should be emulated by banks in Malaysia. The banks make the profits, but only their customers suffer the losses.
"When making transactions, they are customers. When subjected to fraud, they are like ghosts with no master. Is this fair?"